Correlation Between Zijin Mining and Hangzhou Gaoxin
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By analyzing existing cross correlation between Zijin Mining Group and Hangzhou Gaoxin Rubber, you can compare the effects of market volatilities on Zijin Mining and Hangzhou Gaoxin and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Zijin Mining with a short position of Hangzhou Gaoxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Hangzhou Gaoxin.
Diversification Opportunities for Zijin Mining and Hangzhou Gaoxin
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Zijin and Hangzhou is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Hangzhou Gaoxin Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Gaoxin Rubber and Zijin Mining is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Zijin Mining Group are associated (or correlated) with Hangzhou Gaoxin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Gaoxin Rubber has no effect on the direction of Zijin Mining i.e., Zijin Mining and Hangzhou Gaoxin go up and down completely randomly.
Pair Corralation between Zijin Mining and Hangzhou Gaoxin
Assuming the 90 days trading horizon Zijin Mining is expected to generate 95.18 times less return on investment than Hangzhou Gaoxin. But when comparing it to its historical volatility, Zijin Mining Group is 5.14 times less risky than Hangzhou Gaoxin. It trades about 0.03 of its potential returns per unit of risk. Hangzhou Gaoxin Rubber is currently generating about 0.58 of returns per unit of risk over similar time horizon. If you would invest 867.00 in Hangzhou Gaoxin Rubber on November 22, 2024 and sell it today you would earn a total of 902.00 from holding Hangzhou Gaoxin Rubber or generate 104.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. Hangzhou Gaoxin Rubber
Performance |
| Timeline |
| Zijin Mining Group |
| Hangzhou Gaoxin Rubber |
Zijin Mining and Hangzhou Gaoxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Hangzhou Gaoxin
The main advantage of trading using opposite Zijin Mining and Hangzhou Gaoxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Hangzhou Gaoxin can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hangzhou Gaoxin will offset losses from the drop in Hangzhou Gaoxin's long position.| Zijin Mining vs. HengFeng Information Technology | Zijin Mining vs. Heilongjiang Transport Development | Zijin Mining vs. Bus Online Co | Zijin Mining vs. Dazhong Transportation Group |
| Hangzhou Gaoxin vs. Zhongrun Resources Investment | Hangzhou Gaoxin vs. Sino Medical Sciences | Hangzhou Gaoxin vs. CareRay Digital Medical | Hangzhou Gaoxin vs. Metro Investment Development |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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